Shares in the American company AMC rose Wednesday in what could signal a return to the noisy retail trading frenzy that have had also shaken markets earlier this year.
Trading on AMC Entertainment shares has been suspended several times as a large number of shares were bought and sold.
AMC stock has risen to 100%, reaching $ 69.09 over the course of the day.
Meme Stocks On The Rise
The firm has promised to provide free popcorn to small investors.
Analysts say the so-called “meme” stocks, such as AMC and GameStop, should be handled with caution.
It is a recent example of amateur investors trying to take power from the Wall st. giants.
Big hedge funds were betting billions of dollars that GameStop and AMC shares would fall.
But they have suffered losses after the beginners, exchanging tips on social media platforms such as Reddit or Twitter, has raised prices.
‘Frantic Volumes’
By the year so far, AMC shares have increased by 3,000% – even though their films were severely closed during the pandemic.
“It’s frantic volume,” said Brian Overby, analyst at Ally Invest.
Renewed interest has enabled the company to renew its offer to retail investors, who can now claim a free popcorn pack or go to a special movie trial.
AMC has been one of the major beneficiaries of a flood of interest in meme shares, promoted in part by a new generation of small social media traders.
Shares were trading for just over $ 2 at the end of last year.
“The party can continue as long as investors continue to work together,” said Ipek Ozkardeskaya, a senior Swiss analyst. “The problem is, the price is going up and down, it’s a temptation to take a profit and go.”
The Frenzy
AMC is the mist traded option on Wednesday, with 3.5 million contracts changing hands.
About $ 30bn worth AMC shares sold during the day, most of all stocks on Wall Street.
#AMCstock has been at the forefront of Twitter in the US as shareholders discuss their position sizes and gains.
Susannah Streeter, chief investment analyst at Hargreaves Lansdown, said: “Stock market volatility has accumulated over the past few weeks as investors searched out re-opening stocks which could benefit from the easing of social restrictions.
